In December of this year, Nick, a single parent, has redeemed qualified Series EE U.S. Savings Bonds. The proceeds were used to help pay for his daughter's college tuition. Nick received proceeds of $12,000 representing principal of $9,000 and interest of $3,000. The qualified higher educational expenses that he paid this year totaled $10,000. Nicks other AGI for 2020 is $82,350. What is the amount of interest income that Nick can exclude from his income this year?

A) $2,000 B) $2,400 C) $2,500 D) $3,000